Basel III, the fiscal crisis and their consequences on the greek banking sector

• Authors: Spyros Vassiliadis , Diogenis Baboukardos , Panagiotis Kotsovolos
• Languages of publication: EN

Abstracts

EN

The need for tighter and more robust supervision of the global financial system was apparent long before nowadays economic crisis burst out. Although Basel I was the cornerstone of the first effort for the imposition of international regulations to banks, soon it was outrun being substituted by Basel II. The economic shock of 2007 financial crisis led the Committee of Banking Supervision of Basel to a new global regulatory framework for the banking system, aiming to strengthening it against future financial crises. In November 2010, a revised Pact of Basel II, named Basel III, was presented to the Seoul G20 Leaders' Summit. Basel III represents a fundamental strengthening of global capital standards. Together with the introduction of global liquidity standards, the new capital standards deliver on the core of the global financial reform agenda. It is argued that the implementation of Basel III will considerably increase the quality of banks' capital and significantly raise the required level of it. In addition, it will provide a "macro prudential overlay" to better deal with systemic risk. Finally, the new package will allow sufficient time for a smooth transition to the new regime. During the last years the Greek banking system has been found itself in the middle of a turmoil bearing successive shocks; first the global financial crisis and later on a side effect of it: Greece's debt crisis. This paper discusses the future implementation of the newly introduced Basel III into a unique context: Can Basel III secure the congruous operation of the banking system in periods of severe fiscal problems? (original abstract)

Keywords

EN

Financial crisis; Banking sector; Bank supervision

PL

Kryzys finansowy; Sektor bankowy; Nadzór bankowy

• Publisher: Instytut Naukowo-Wydawniczy "SPATIUM"
• Journal: Central European Review of Economics & Finance
• Year: 2012
• Issue: Vol. 2, No 1
• Pages: 31-43

Contributors

author

Spyros Vassiliadis

• Alexander TEI of Thessaloniki

author

Diogenis Baboukardos

• Jönköping International Business School, Sweden

author

Panagiotis Kotsovolos

• Hellenic Open University, Grecja

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